Home / Knowledge / News / Apparel/Garments / Vietnam garment sector braces for TPP
Vietnam garment sector braces for TPP
22
Jan '16
In order to take the complete benefit of Trans-pacific Partnership Pact (TPP), a free trade agreement involving 12 nations, the Vietnam National Textile and Garment Group (Vinatex) will increase the local content of its products to 60 per cent by 2018, according to Vietnam media reports.

Vinatex recently put into operation two yarn making factories and a dyeing-weaving plant, in order to get benefited from the “Yarn Forward Rule”. This rule requires the TPP member country to use a only yarn produced in any other TPP member country to receive duty-free access. Vinatex will also produce around 12,000 tonnes of knitted material a year. Apart from this six other garment making plants are also expected to be completed this year, said Vinatex chairman Tran Quang Nghi.

TPP will bring down the taxes by 100 per cent for Vietnam, as a result the Vietnamese textile and garment industry will get a boost in terms of volume and turnover. However, the actual benefit will take some time as the TPP needs to be approved by parliaments of all member countries before it can be implemented.

Meanwhile, Vinatex general director Le Tien Truong said that global demand for textiles and apparel will stay at around the same level this year as it was in 2015 since except for the US, major markets like Japan and Europe are showing low economic growth. He expects Vietnam's textile and clothing sector to grow at around 12 per cent this year.

The moves of countries in the region to devaluate their domestic currencies has reduced the production cost in those countries compared to Vietnam's, which might let the buyers to switch orders to other countries like Indonesia, Myanmar and China, said Nguyen Xuan Duong, general director of Hung Yen Garment Company (Hugaco). (NA)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th May 2017

Huntsman and Clariant to have merger of equals

Huntsman Corporation and Clariant have announced that their boards of ...

Courtesy: CBRE

Apparel/Garments | On 25th May 2017

European cities preferred for retailer expansion: CBRE

European cities were the preferred new destination for international...

Apparel/Garments | On 25th May 2017

Guess records $458.6 million revenue for Q1 2018

For the first quarter of fiscal 2018, the net revenue of American...

Interviews View All

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search